From a Corporate Job to a Nonprofit

By

Toddi Gutner

Updated Nov. 11, 2008 12:01 a.m. ET

As the country continues to shed jobs, laid-off employees may be rethinking their careers. For some, that may mean shifting from just doing well financially to also doing good. Turning your veteran business skills and experience to the world of nonprofit organizations can be rewarding. But there are also challenges. When making a transition to nonprofit management, consider the following:

Expect a pay cut. Depending on the size, location and mission of the nonprofit, salaries will typically be less than those of corporate jobs for many midlevel and entry-level jobs, says Thomas Pollak, program director of the nonprofit National Center for Charitable Statistics at the Urban Institute. At executive and management levels, salaries are often closer to those in the for-profit world. Additional benefits like restricted stock, options and lofty bonuses will be a thing of the past.

Be realistic. There are often considerable financial constraints at a nonprofit that aren't as prevalent in corporate America. Go into the position with realistic expectations of what you can and cannot achieve. Nonprofits need the business skills -- like managing profit and losses -- that executives learn in corporate America. But these organizations rely on often-erratic revenue streams from donations, foundations and grants to fund budgets. Remember, "It will be just as hard to achieve your goals, maybe harder, as in corporate life," says John Challenger, chief executive officer of Challenger Gray & Christmas, an outplacement-services firm in Chicago.

Do a SWOT. When Joyce Barnathan took over as the president of the International Center for Journalists, a nonprofit that aims to raise journalism standards world-wide, she was coming off a 25-year career in media as a top business magazine editor and writer. Like most new leaders in the for-profit world, Ms. Barnathan did a SWOT analysis assessing the organization's Strengths, Weaknesses, Opportunities and Threats. "I had to think about the strengths of the organization and build on them without breaking what isn't broken," says Ms. Barnathan.

Build your team. In corporate America, new leaders often quickly sweep aside current management. Nonprofit managers need to take a more-measured approach with the team they inherit, because nonprofit employees are typically bound together by a common commitment to a cause. Thus, there can be an unspoken understanding that job security is part of the employment package, says Mr. Challenger. Changes may need to be made, but it could take a year to build the team you want.

Prepare to fund raise. One of the key roles of almost every nonprofit manager is to raise money and spread the word about the organization. As a fundraiser, you'll need to attend board committee meetings and cultivate and attend fundraising events. Consider attending nonprofit training courses at the Foundation Center to beef up these skills. For many nonprofit newbies, finding ways to diversify and attract new funding sources is key. "You have to find sophisticated, smart ways to interest a broad array of funders that wouldn't normally back you," says Ms. Barnathan.

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